STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 6907

July 15, 1996

METROPOLITAN COUNCIL:

Authority of a metropolitan council to amend its articles and to levy a property tax

The requirement that any amendment to the articles must be approved by the legislative body of each participating unit under section 9(1) of the Metropolitan Council Act does not violate any provision of the Michigan or United States Constitution.

State law does not provide inherent taxing authority for a council when the power to tax authorized by section 7(3) of the Metropolitan Council Act is not found in the council's articles.

Honorable Dick Posthumus

State Senator

The Capitol

Lansing, Michigan

You have asked two questions regarding the property taxing authority of the Grand Valley Metropolitan Council (GVMC) under 1989 PA 292, The Metropolitan Council Act, MCL 124.651 et seq; MSA 5.4086(51) et seq.

Under section 9 of the Metropolitan Council Act, a council is formed by two or more local governmental units adopting and filing articles of incorporation. As originally adopted in 1990, the articles of the GVMC granted it the power to impose a property tax under section 7(3) of the Metropolitan Council Act, subject to voter approval under section 25(2) of the same act. The articles were amended in 1993 to delete the power to tax.

Under section 9(1) of the Metropolitan Council Act, any amendment to the articles must be approved by "the legislative body of each participating local governmental unit." You first ask whether the requirement that any amendment to the articles must be approved by the legislative body of each participating unit under section 9(1) of the Metropolitan Council Act violates any provision of the Michigan or United States Constitution.

Under Const 1963, art 7, s 27, the Legislature is expressly authorized to "establish in metropolitan areas additional forms of government or authorities with powers, duties and jurisdictions as the legislature shall provide." [Emphasis added.] Thus, under the Michigan Constitution the Legislature has the authority to determine the powers of any additional forms of government in metropolitan areas. In addition, the Michigan Legislature has all the powers not limited by either the United States or Michigan Constitution. This includes the authority to determine the powers and duties of local units of government. Harsha v Detroit, 261 Mich 586, 590-591; 246 NW 849 (1933). Also, the United States Constitution does not limit the authority of state legislatures to determine the powers and duties of local units of government. Michigan Attorney General ex rel Kies v Lowrey, 199 US 233, 239-240; 26 S Ct 27; 50 L Ed 167 (1905).

It is my opinion, therefore, in answer to your first question, that the requirement that any amendment to the articles must be approved by the legislative body of each participating unit under section 9(1) of the Metropolitan Council Act does not violate any provision of the Michigan or United States Constitution.

Your second question asks whether state law provides inherent taxing authority for a council when the power to tax authorized by section 7(3) of the Metropolitan Council Act is not found in the council's articles.

The power to tax is vested exclusively in the Legislature. See Const 1963, art 4, s 1, and Harsha v Detroit, supra, 261 Mich at p 591. Municipal corporations have no inherent power of taxation. Barnhart v Grand Rapids, 237 Mich 90, 95; 211 NW 96 (1926). They possess only such powers as have been granted to them by constitution or statute. The Legislature may delegate the power to tax to municipal corporations. Bullinger v Gremore, 343 Mich 516, 537-538; 72 NW2d 777 (1955).

It is my opinion, therefore, in answer to your second question, that state law does not provide inherent taxing authority for a council when the power to tax authorized by section 7(3) of the Metropolitan Council Act is not found in the council's articles.

Frank J. Kelley

Attorney General